The United States and Japan are forming a so-called 'two-track' negotiation structure this week as they discuss exchange rates and tariff issues through separate channels.
According to the Kyodo News on the 20th, U.S. Treasury Secretary Scott Bessen and Japan's Minister of Finance Katsunobu Kato plan to hold bilateral talks regarding the exchange rate issue during the Group of Seven (G7) finance ministers and central bank governors meeting in Canada from the 20th to the 22nd.
The two ministers had previously met for about 50 minutes in Washington, D.C., on the 24th of last month. At that time, Minister Kato noted, 'There was no mention from the U.S. side regarding the exchange rate level, goals, or management system,' and stated, 'We agreed to continue close and constructive discussions regarding the exchange rate.'
U.S. President Donald Trump has expressed complaints about the weakness of the yen in the past; however, in the U.S.-Japan tariff negotiations, the exchange rate issue is not being treated as an official agenda, resulting in the negotiations between the two countries effectively being divided along the two axes of exchange rates and tariffs.
Meanwhile, the third U.S.-Japan tariff negotiations are expected to take place as early as the 23rd in the United States. According to Kyodo News, Japan's representative, Minister of Economic Revitalization Ryosei Akazawa, is scheduled to visit the U.S. from the 22nd to participate in negotiations the following day.
U.S. Treasury Secretary Bessen will not participate in this tariff negotiation, and it is reported that Jamieson Greer, the representative of the Office of the United States Trade Representative (USTR), will serve as the U.S. negotiating partner.
Ahead of the ministerial-level negotiations, working-level discussions have also resumed. Minister Akazawa revealed during a press conference right after a cabinet meeting that 'working-level discussions have been underway since the 19th U.S. time.'
A U.S. government official also confirmed that the U.S.-Japan tariff negotiations are scheduled to take place later this week.
In the second tariff negotiations held on the 1st, Japan demanded a review of the automobile tariff policy promoted by the Trump administration; however, the U.S. side maintained its stance that only reciprocal tariffs would be the subject of negotiation.